Suzlon Energy, IEX Q2 results review: Stocks fall up to 6% today
Suzlon Energy slipped over 7 per cent to a day’s low of ₹34 apiece on the BSE against its previous close of ₹36.79 per share, while IEX fell 2.32 per cent to trade at ₹102.95.
Reviewing the earnings, Operationally, JM Financial noted that Suzlon’s Q2 marked strong WTG deliveries of 710 MW versus 565 MW in Q2FY26, while installations trebled to 454 MW from 153 MW at an average realisation of ₹5.9 crore per MW.
Suzlon’s 6 GW order book includes a 78 per cent contribution from PSU and C&I clients, led by Q2 order wins of 202 MW from Waaree and 250 MW from Torrent Power. After management cut full-year FY27 EBITDA margin guidance to 15–16 per cent from 17–18 per cent, JM Financial reduced its FY27E, FY28E, and FY29E margin estimates to 15 per cent, 16 per cent, and 15.5 per cent, while projecting deliveries of 3 GW, 3.3 GW, and 3.5 GW.
The brokerage stated, “We believe margins and growth prospects for Suzlon would be under pressure FY28 onwards due to limited India market (7-8GW pa) and increasing competition (15-20GW industry capacity), not to mention growing pains of a single-product company.”
Meanwhile, JM Financial noted that total power volume increased 13 per cent YoY to 40 billion units (BU), predominantly driven by growth in RTM and TAM volumes. Day-ahead market (DAM) and real-time market (RTM) volumes grew 2 per cent and 10 per cent YoY to 14.9 BU and 16.5 BU, while term-ahead market (TAM) volumes jumped 101 per cent to 5.5 BU.
Average market clearing prices in DAM and RTM surged 46 per cent and 49 per cent YoY to ₹5.7 and ₹5.2 per unit, driven by elevated power demand during the quarter, while Indian Gas Exchange volumes jumped 160 per cent YoY to 42 million MMBtu, the brokerage highlighted.
JM Financial downgraded Suzlon Energy to ‘Add’ from ‘Buy’ and cut its target price to ₹40 from ₹46 earlier (valued at 12x September 2028E EBITDA), while maintaining an ‘Add’ rating on IEX with an unchanged target price of ₹117 per share (valued at 18x September 2028 PE).